Question

The owner's equity in a business amounted to $52,000 at the beginning of the year and $100,000 at the end of the year. The owner had made no additional investments and had withdrawn $19,000 during the year. The net income for the year amounted toA. $171,000.
B. $48,000.
C. $81,000.
D. $67,000.

Answer 1

Answer:

The correct option is option D, $67,000.

Explanation:

Ending Owner's equity = Beginning Owner's equity+Net income-Drawings

100,000 = 52,000+Net income-19,000

Net income = 100,000-52,000+19,000

Net income = 67,000

Therefore the net income for the year amounted to $67,000.